LS Electric Invests $240M in Expanded U.S. Production Amid Tariffs

LS Electric-US investment

SEOUL, April 16 (Yonhap) -- LS Electric Co., a South Korean manufacturer of electrical equipment, announced on Wednesday plans to invest $240 million over the coming decade to boost its American manufacturing capacity as a reaction to U.S. President Donald Trump’s imposition of import duties.

LS Electric has recently expanded its current manufacturing plant in Bastrop, Texas, to incorporate research and development (R&D) as well as planning capabilities, according to a statement from the firm.

According to the release, the U.S. market and the improved Bastrop Campus will act as a launchpad for LS Electric to transform into a global provider of electrical equipment.

This year, the firm plans to start manufacturing mid-range electrical components and switchgear at their facility in Texas. These products will be supplied to major technology companies locally as part of their localization initiative aimed at mitigating "tariff-related uncertainties," the company stated.

The facility has primarily manufactured circuit breakers and low-voltage electrical equipment for Samsung Electronics' semiconductor plant in Texas as well as various local data centers.

"By 2030, we plan to invest an extra $240 million in the Bastrop Campus with the aim of establishing it as a key center for electric equipment solutions in the North American market," stated LS Electric Chairman Koo Ja-kyun in the announcement.

By 2030, LS Electric plans to generate 70 percent of its total revenue from international markets, an increase from the present 50 percent.

In the previous year, its sales increased by 7.6 percent to reach 4.55 trillion won ($3.18 billion), up from 4.23 trillion won in the prior year.

The firm presently operates four facilities within the country and five international sites — consisting of two in China, two in the U.S., and one in Vietnam.

The other American facility is situated in the state of Utah.

LS Electric is a subsidiary of the LS Group, which specializes in manufacturing power cables and electrical equipment.

kyongae.choi@yna.co.kr

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